Why It Matters

A new Government Accountability Office (GAO) report examines federal disaster assistance available to businesses near winter attractions harmed by low snowfall or warm winters. The report found that while these conditions can seriously hurt ski areas and other hospitality businesses, they do not fall under the federal definition of "natural disaster," leaving affected companies without a clear path to Small Business Administration (SBA) disaster loans. The Small Business Administration's Economic Injury Disaster Loans (EIDL) do offer relief in drought-stricken areas, but low snowfall and warm winters are not always tied to drought, meaning some affected businesses cannot even apply.

The Big Picture

The GAO report, "SBA Disaster Loans: Assistance for Businesses Affected by Low Snowfall or Warm Winters," was published July 14 under designation GAO-26-109126. It responds to a provision in the Joint Explanatory Statement accompanying the Financial Services and General Government Appropriations Act, 2026, directing GAO to examine how affected businesses can seek federal relief.

The Robert T. Stafford Disaster Relief and Emergency Assistance Act does not include relatively low snowfall or warm winters in its definitions of a qualifying disaster, since both statutes are built around sudden events causing physical damage rather than gradual economic harm. Drought, by contrast, is a recognized disaster type under both laws, typically declared by the Secretary of Agriculture, which is why some businesses can access EIDL funding through that route while others cannot.

The report notes that U.S. ski areas saw a 9 percent drop in visits, about 9 million fewer than the prior 10-year average, during the 2025-2026 season, a decline industry representatives linked to inconsistent snowfall and unusually warm conditions in western states. GAO identified options for Congress if lawmakers choose to expand EIDL eligibility, including amending the statutory definition of "natural disaster" or directing agencies to update implementing regulations. GAO also cautioned that broadening eligibility could set a precedent for other weather-driven business losses, such as extended heat waves, potentially increasing long-term federal exposure.

The Bottom Line

The report gives Congress and the SBA a documented basis for deciding whether to broaden disaster assistance to cover winter weather impacts, following the same rationale that already applies to drought. Any expansion would likely require either new statutory language or updated regulations, and GAO's own caution about setting a broader precedent suggests the decision carries implications well beyond ski country.

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